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t125
April 14, 2022
Question

If I receive car allowance ($500) from my employer each month how much tax, I have to pay? and when? and also if it's any deduction to reduce income for this reason.

  • April 14, 2022
  • 1 reply
  • 0 views
can I deduct depreciation?

1 reply

D
DavidD66
April 14, 2022

The $500 per month payment should be included in box 1 of your W-2 as taxable wages.  The tax on it is not calculated separately.  If you are a W-2 employee, there is no deduction for the use of your personal vehicle for work.  

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